# Online Cigar Taxes?



## Dusty2119 (Aug 10, 2007)

Not to put any kind of damper on anyones moods but I had a question about tobacco taxes when ordering cigars from out of state.

When you order cigars online say from CI or Cigar.com or any other place and you live out of state, do you have to report this or pay your state's tobacco tax on this eventually?

Sorry I read an interesting article on this last night and as soon as I find it again I'll post the link. It just really confused me and kind of angered me a tad bit.


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## stanthetaxman (Oct 10, 2005)

I'm guessing here............
Each state may or may not have an excise tax and/or a sales tax for in-state sales? The out-of-state shipper WON'T collect that tax for the state they are shipping to, so it's up to the individual in that state to pay the proper tax to the state?


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## Python (Dec 3, 2007)

To the best of my knowledge, Stan is correct.

It is up to the consumer to report and pay the taxes to their respective state for any out of state online/mail order purchases of tobacco products.


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## Dusty2119 (Aug 10, 2007)

Python said:


> To the best of my knowledge, Stan is correct.
> 
> It is up to the consumer to report and pay the taxes to their respective state for any out of state online/mail order purchases of tobacco products.


Oh....oops :shock:


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## Herzen (Jun 13, 2008)

Here in New York the state tried a couple of years ago to collect taxes on all online purchases as well as purchases made on Native American reservations (where state taxes are not collected). Since the state had no way to monitor these purchases, you were SUPPOSED to voluntarily pay them come tax time. 

My tax guy mentioned it that one time; he had me pay a flat fee. I never heard about it again. 

I believe enforcement is rather difficult...


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## Dusty2119 (Aug 10, 2007)

Well most of my purchases last year were from my local b&m buying singles to try out and most of my purchases online were through cbid and I probably didn't spend over $300 on cigars online last year. So hopefully I won't have anything to worry about. I'll make sure to keep reciepts on that this year though. That kinda sucks though and IMHO is kind of a BS way of doing things. But then again I think that about the entire tobacco tax thing.


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## CRider (May 11, 2007)

Guess that's the downside to living in the same state as CI, cigar.com & C-bid...they do get me for taxes. Course, I get my shipments in a day, so it's not all bad :lol:


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## stanthetaxman (Oct 10, 2005)

What's the sales tax there, Chris?


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## CRider (May 11, 2007)

6% for now...


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## JAX (Sep 18, 2007)

ouch.....thankfully I've never had to pay any online cigar tax...


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## 19redwings (Mar 2, 2007)

So far, so good here in NY.

However, Newegg has sent me notice that they will be charging NYS sales tax on any orders I place with them. Funny, I haven't ordered anything since from them...


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## olsaltybastard (Dec 25, 2007)

I remember hearing something on the radio that Ohio was going to send a tax bill to anyone who purchased cigarettes online. Since I don't live in Ohio, I continued with not giving a shit, but I was curious as to how much money the state was actually going to spend vs how much it was going to collect. Seems that what happened was the state squandered the money that was won in the "tobacco settlement" a few years back and is now (once again) totally broke. 

All you tax cheats in Ohio better get ready to pay your dues!!


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## slowburning (May 20, 2007)

CRider said:


> Guess that's the downside to living in the same state as CI, cigar.com & C-bid...they do get me for taxes. Course, I get my shipments in a day, so it's not all bad :lol:


While you pay 6% sales tax, you DO NOT have a tobacco tax in PA.

In New York, tobacco tax is 38%, along with 8.25% sales tax, a box of cigar normally retails for $100 in a B&M is now $146.25.

btw, I get my orders from CBid/CI/Holts/Famous in a day also. :lol: :lol:


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